CLS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 123 industry peers in the Electronic Equipment, Instruments & Components industry. While CLS has a great profitability rating, there are some minor concerns on its financial health. CLS has a decent growth rate and is not valued too expensively.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

CLS had positive earnings in the past year.
CLS had a positive operating cash flow in the past year.
CLS had positive earnings in 4 of the past 5 years.
CLS had a positive operating cash flow in 4 of the past 5 years.

1.2 Ratios

CLS has a Return On Assets of 10.85%. This is amongst the best in the industry. CLS outperforms 91.87% of its industry peers.
CLS has a better Return On Equity (35.33%) than 95.94% of its industry peers.
The Return On Invested Capital of CLS (21.33%) is better than 96.75% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CLS is above the industry average of 8.85%.
The 3 year average ROIC (11.43%) for CLS is below the current ROIC(21.33%), indicating increased profibility in the last year.

		Industry Rank	Sector Rank
ROA	10.85%
ROE	35.33%
ROIC	21.33%

ROA(3y)4.63%

ROA(5y)3.55%

ROE(3y)15.02%

ROE(5y)11.3%

ROIC(3y)11.43%

ROIC(5y)8.93%

1.3 Margins

The Profit Margin of CLS (6.35%) is better than 72.36% of its industry peers.
CLS's Profit Margin has improved in the last couple of years.
CLS has a better Operating Margin (7.33%) than 70.73% of its industry peers.
In the last couple of years the Operating Margin of CLS has grown nicely.
Looking at the Gross Margin, with a value of 12.04%, CLS is doing worse than 76.42% of the companies in the same industry.
CLS's Gross Margin has improved in the last couple of years.

		Industry Rank	Sector Rank
OM	7.33%
PM (TTM)	6.35%
GM	12.04%

OM growth 3Y24.27%

OM growth 5Y29.03%

PM growth 3Y34%

PM growth 5Y30.13%

GM growth 3Y8.03%

GM growth 5Y10.39%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

CLS has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
CLS has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.

2.2 Solvency

CLS has an Altman-Z score of 6.68. This indicates that CLS is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of CLS (6.68) is better than 82.93% of its industry peers.
The Debt to FCF ratio of CLS is 1.97, which is an excellent value as it means it would take CLS, only 1.97 years of fcf income to pay off all of its debts.
With a decent Debt to FCF ratio value of 1.97, CLS is doing good in the industry, outperforming 78.05% of the companies in the same industry.
A Debt/Equity ratio of 0.37 indicates that CLS is not too dependend on debt financing.
The Debt to Equity ratio of CLS (0.37) is comparable to the rest of the industry.

		Industry Rank	Sector Rank
Debt/Equity	0.37
Debt/FCF	1.97
Altman-Z	6.68

ROIC/WACC2.67

WACC7.98%

2.3 Liquidity

A Current Ratio of 1.47 indicates that CLS should not have too much problems paying its short term obligations.
The Current ratio of CLS (1.47) is worse than 75.61% of its industry peers.
A Quick Ratio of 0.88 indicates that CLS may have some problems paying its short term obligations.
CLS's Quick ratio of 0.88 is on the low side compared to the rest of the industry. CLS is outperformed by 85.37% of its industry peers.
The current and quick ratio evaluation for CLS is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.

		Industry Rank	Sector Rank
Current Ratio	1.47
Quick Ratio	0.88

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 54.59% over the past year.
The Earnings Per Share has been growing by 43.67% on average over the past years. This is a very strong growth

EPS 1Y (TTM)54.59%

EPS 3Y46.94%

EPS 5Y43.67%

EPS Q2Q%70.27%

Revenue 1Y (TTM)N/A

Revenue growth 3YN/A

Revenue growth 5YN/A

Sales Q2Q%43.57%

3.2 Future

Based on estimates for the next years, CLS will show a very strong growth in Earnings Per Share. The EPS will grow by 33.06% on average per year.
CLS is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 28.15% yearly.

EPS Next Y38.59%

EPS Next 2Y37.93%

EPS Next 3Y33.06%

EPS Next 5YN/A

Revenue Next Year32.94%

Revenue Next 2Y32.93%

Revenue Next 3Y28.15%

Revenue Next 5YN/A

3.3 Evolution

The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.

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4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 46.37, the valuation of CLS can be described as expensive.
CLS's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of CLS to the average of the S&P500 Index (28.32), we can say CLS is valued expensively.
Based on the Price/Forward Earnings ratio of 33.46, the valuation of CLS can be described as expensive.
CLS's Price/Forward Earnings is on the same level as the industry average.
CLS is valuated rather expensively when we compare the Price/Forward Earnings ratio to 25.57, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	46.37
Fwd PE	33.46

4.2 Price Multiples

CLS's Enterprise Value to EBITDA ratio is in line with the industry average.
CLS's Price/Free Cash Flow ratio is in line with the industry average.

		Industry Rank	Sector Rank
P/FCF	81.18
EV/EBITDA	33.15

4.3 Compensation for Growth

The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
CLS has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as CLS's earnings are expected to grow with 33.06% in the coming years.